Overview

Investment in housing and property is beset by many uncertainties in
the prevailing real estate scenario. The investment and transaction
decisions in this sector are characterised by uncertainties due to
low level of information.

NAREDCO's mission is to improve the confidence level of both
investors and consumers by bringing in fair practices through self-
regulation. The rating of Real Estate developer and project would
enhance the comfort levels of the consumers while making investment
decisions, and also help developer to mobilise funds for their
projects. A number of rating mechanisms are available in the market,
but their acceptance and adherence by the consumers and developers
is hindering the progress of real estate industry. The rating
parameters developed by NAREDCO on the basis of Haryana Model need
to be widely discussed and debated to bring quality products in the
market, which can qualify for the top most grades. A unique aspect
of NAREDCO rating is the introduction of real estate industry
experts in the process of rating prior to assigning the grades by
the rating agencies.

NAREDCO rating is not restricted to only one rating agency
(presently only with CRISIL). NAREDCO looks forward to interaction
with all such agency in India & abroad. Shortly, NAREDCO would be
signing a memorandum of Understanding with ICRA (another premier
rating agency in India) for rating of real estate developer and
projects.

CRISIL - NAREDCO Rating Rating of Real Estate Projects and
Developers

National Real Estate Development Council (NAREDCO) is the apex
national body for Real Estate Development, with Hon'ble Minister of
Urban Development and Food & Consumer Affairs, Public Sector
organisations and all practitioners of real estate sector, for self
regulation of industry and bringing ethics and code of conduct in
this profession. NAREDCO's mission is to improve the confidence
level of lenders, investors and consumers by bringing in
professional practices. One of the highly professional methods is to
develop a system of rating developers and real estate projects to
enhance the confidence levels of lenders, investors and consumers
while making lending and / or investment decisions.

Credit Rating Information Services of India Ltd., established in
1987, has come a long way in pioneering the concept of credit rating
in India. Today, it is the market leader with dominant share in the
rating business in India and is instrumental in developing the
framework and methodology for rating rupee denominated debt
obligations of Indian corporates and financial institutions along
with the debt issues of large infrastructure projects. Individuals,
institutional investors and lenders use CRISIL ratings as a
benchmark for framing investment and lending policies.

CRISIL as part of their rating service has developed rating
methodology for the Real Estate Sector and has completed a large
number of projects rating across the country. NAREDCO, being the
apex body representing real estate sector, concern has been invited
by government to be the agency for rating the developers/ real
estate projects, Based on this, NAREDCO entered in a Memorandum of
Association with CRISIL for carrying out rating of Real Estate
Projects and Developers. The methodology and symbols for the same
have been developed by CRISIL, in consultation with NAREDCO and
National Housing Bank (NHB).